Project Cost Allocation Clause Samples
The Project Cost Allocation clause defines how the expenses associated with a project are distributed among the involved parties. Typically, this clause outlines the specific costs each party is responsible for, such as labor, materials, or overhead, and may establish formulas or percentages for dividing shared expenses. By clearly assigning financial responsibility, this clause helps prevent disputes over payments and ensures transparency in managing project budgets.
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Project Cost Allocation. Except as otherwise provided in the Agreement, the Parties agree that the categories of Project Costs that are delineated on the spreadsheet attached as Exhibit “6” will be allocated to each Party pursuant to the Allocation Percentage. As an example, the spreadsheet includes the construction of ‘off-site work’, which cost will be allocated pursuant to the Allocation Percentage to both Parties. If the off-site construction cost is $200,000.00, and for purposes of this example, the Allocation Percentage is 70% City, 30% NSHE, then NSHE’s cost allocation for the off-site improvements for purposes of the NSHE Allocation Cap is $60,000.00. All Project Costs numbers on Ex. 6 are illustrative only.